Tag: ‘Nimi Akinkugbe

Christmas time is very important, but do we need to put ourselves under so much pressure to overspend? You don’t have to compromise your fun; you can have a great Christmas and still leave money in the bank. Here’s how:

Prepare a Christmas budget

Before you begin any Christmas shopping, prepare a Christmas budget. How much are you willing and able to spend this year on Christmas and all its trappings; gifts, decorations, extra food and drink, clothes, entertainment, phone calls, charitable donations and travel. Compare that total with what you have available to spend. If it is more than you can afford, just look for areas to trim.

It’s a great idea to plan a budget but it’s more important to stick to it. The key to sticking to a budget is bearing in mind the total amount you have allocated to each category and do not allow yourself to go over that amount.

Make a list…and check it twice!

Make a list of friends and family for whom you wish to purchase gifts and allocate an amount to each person. Remember those who have been particularly helpful through the year and include a few extra gifts for unexpected guests. Sometimes, you receive a gift from someone not on your list and feel obliged to reciprocate. You will have to drop some people from your list; don’t worry; they are probably dropping you too!

Avoid borrowing to fund Christmas

How much can you afford to spend without going into debt? It is usually better to pay with cash to purchase toys and other gifts, rather than to borrow as the interest cost will only make everything much more expensive particularly if you use your credit card. Many families will still be paying for their Christmas overindulgence well into 2017 at a time when school fees are due. Don’t let that be you.

You can still save for Christmas

If you are able, set aside a certain amount each week between now and Christmas, so you build up spending money. Do you spend thousands of naira each month eating out or buying takeaway lunch meals? Why not save this by taking a packed lunch to work every day between now and Christmas. It all adds up. Start saving a small amount each month from January and next Christmas will be effortless.

Make your travel plans early

It may be too late to secure discount fares now but don’t get caught out next time. Advance bookings are often cheaper.

Shop now for Christmas, bit by bit

Shopping under pressure will lead you to overspend. Shop early; that way you can shop around for more meaningful and appropriate gifts than you will find in a last minute shopping spree. Between now and Christmas, add some Christmas shopping to your usual grocery shopping. Don’t wait until the last minute. Acumulating gifts throughout the year eases the pressure and you won’t feel the financial strain of buying several presents all at once.

7. After Christmas sales

After-Christmas sales are a great opportunity to pick up gifts cheaply as many items are sold at much reduced prices in January. This is a useful way to prepare for next Christmas!

Buy in bulk

Food is a major Christmas expense. In the run up to Christmas, we tend to buy far too much food, and so much of it will end up in the dustbin, wasted. Plan your Christmas food requirements now and make a list of all that you will need. Consider bulk buying of some items that can be shared with friends and family. You can share the cost of a cow, a turkey, a sack of rice, and other Christmas needs.

Declutter and make some money

If your home store is full of presents at Christmas, now is the time to take stock and decide what to sell or pass on. Dig up all those gifts you never used that are cluttering up your shelves. Before you give everything away, consider whether you could offset some of your Christmas costs by selling some stuff. List your items on OLX and you will be surprised how many people will be so happy to purchase things that you no longer have any use for.

Split the cost

If you are expecting the extended family over this Christmas, which could be dozens of people, split the cost so that one person buys and prepares the starters, one does the main meal and another the deserts. The joint effort will save you money and you can still enjoy family bonding time.

Try a “secret Santa” approach

Are you hosting a big family Christmas with your extended family? Wouldn’t it be wonderful to be able to buy special gifts for all your loved ones? The reality is that funds are limited and the extended family and friends can be unlimited. Try a “Secret Santa” approach which allows everyone to buy just one present. Set a maximum price limit for gifts so that the richer relatives don’t make the poorer relations feel bad. This is so much fun as it saves so much cash and leaves everyone excited and guessing as they open their gifts.

Give your children the gift of a mutual fund

Presents that improve personal finances are an ideal gift at Christmas; not only do they outlast expensive toys and hi-tech gadgets, but they may continue to give, long after the wrapping paper has been thrown away. The gift of stock or a mutual fund investment is a thoughtful financial gift to a young child and could be the start of a rewarding long-term savings plan. You can invest with as little as N5,000.

Encourage your children to use their creative talents

Encourage your children to present handmade gifts to loved ones who will treasure them. Often personalised gifts or those of great sentimental value, such as framed photographs, painted pictures from school art class nicely framed, recordings of a grand-daughter’s song, a piece of poetry, some specially baked cakes, or a specially grown potted plant, do not cost and will be much appreciated. This is also a way of teaching children valuable lessons that it is not all about money; thoughtfulness is far more important.

Send e-Christmas cards

I am sentimental about traditional Christmas cards but if you aren’t, then send e-cards instead. You can do good through your Christmas Cards by sending them in conjunction with a charity such as UNICEF or other philanthropic initiative.

Make a natural Christmas tree

If you are unable to afford a new Christmas tree, pick up some scrap branches on the roadside where trees have been felled at construction sites. Stand them in a large flower vase and hang up your favourite baubles. It will look absolutely stunning with a bright ribbon tied around the vase. This always adds a special touch for additional décor, even where you have the main tree up.

Make your own Christmas hampers

Homemade Christmas hampers for friends and family make great gifts. Buy the contents in bulk and divide them up among the hampers. Decorating and filling up the hampers will provide much fund for your children as well as provide valuable lessons.

Are you getting a Christmas bonus?

If you are fortunate enough to receive a Christmas bonus, try not to spend it all. By spending it all, you could be forfeiting a great opportunity to build your savings. Invest at least a part of it to pay off or at least reduce your high interest debt, add some cash to your emergency funds, or invest part of it.

There are people far worse off than you

It is important to remember that even though the recession may have affected your family badly, there are so many people far worse off than you. Even though things are rough, spare a thought for others in need. Giving doesn’t always have to be about money. You can give of your time, talent, or expertise. Involve your children; this will teach them powerful lessons that they can have a positive effect on the wellbeing of others.

Don’t forget the reason for the season. In all the festivity, it is so easy to forget the essence of Christmas and the values espoused about loving one another and not money.

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Punch Games

If you go round a room and ask the question, “What does wealth mean to you?” each of us will have a different definition of what wealth means to us. It is personal and it has much to do with our situation.

In her article “Redefining Wealth”, Karen Ann Kennedy says “Everything in our life is about exchange. We live our lives in a modern-day barter system that trades something (usually time) for something else (usually money). We trade time with our families for time at the office. We trade time taking care of ourselves for time at the office.”

We trade almost everything for money – our time, our health. We work so hard, several hours a day to afford so many things that we don’t have the time to enjoy. Yes, we all have to work and make a living. But you do need to ask yourself, “at what expense?”

It is important that from time to time we stop and reflect on what really matters to us. There is no better time than now when so many Nigerians are going through incredibly challenging times. Take a few moments to add up the things in your life that money cannot buy. Certainly having enough money to be able to take care of your obligations such as your rent, school fees, medical bills and to be able to set aside some savings and investments, reduces the anxiety and worry that we are faced with, but it is as important to realise that it is not all about money.

Here are some of the important things that money does not buy:

Money can’t buy you health

Can you put a price on your health? Or your life? Money can pay for expensive hospital treatments, comprehensive insurance coverage and all the tablets or medication that you can swallow but the best medical care in the world doesn’t guarantee you good health. Health has more to do with your long-term lifestyle and habits. It also has to do with your genes. Don’t neglect your health. Don’t spend all your time chasing money only to spend it all on stress related medical bills. Rest, eat healthily, exercise and live.

Money won’t buy you a wonderful family or good friends

Money doesn’t guarantee you a healthy, happy family, of course it can help support your family with the basic comforts and even the luxuries of life, but at the core of relationships, the essence, is not about money.

You may attract a posse of “friends” if you are rich, but how many true friends can you really vouch for if you lose all your money. Good friends are one of life’s best gifts. The support, care, and thoughtfulness that come from genuine friendship has no price tag. Cherish your friends as you would your most prized possession; they are rare and precious.

Money doesn’t buy respect

In Nigeria, it might appear as though money buys respect, doesn’t it? We all want to be respected; we want the respect of our relations, our colleagues at work, and society at large.

If you are very rich, people may be very nice to you, but sadly this is often because of what they hope to get from you. When fortunes fade, those “fair weather friends” tend to disappear into the sunset. True respect can only be earned and not bought.

Money can’t buy you experience

Some of the best lessons are learnt through experience and it is through this that some of the deepest knowledge comes. It is only through hard work and time that knowledge and experience can be derived.

Money doesn’t buy happiness

Our materialistic ostentatious society relays a false message that money is the most important thing and the constant desire for more has caused untold damage to our societal value system, morals and economy. Money buys you food, clothing, shelter, experiences, and things. Beyond that, longer-term happiness is dependent upon a strong relationship with God, a loving healthy family, reliable friends, good health, a fulfilling secure business or job, security, moral values, and freedom. Next to these things all the money in the world pales into insignificance.

Money cannot buy you time

Don’t waste your time. Once those seconds, minutes, hours, days, weeks, months, years pass, they are gone forever. Don’t spend your life chasing after things that don’t matter. The precious moments you missed spending with your loved ones are gone. Stop now and re-consider your time.

Copyright PUNCH.All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.